Debt of Spanish public companies that are not part of the Public Administration sector It was at 2.8% by the end of 2022 According to the report, its share of Gross Domestic Product (GDP) decreased by four-tenths compared to the previous year.Development of public debt in Spain in 2022It was published this Friday by the Bank of Spain.
On the other hand, according to the latest updated data for the third quarter of 2023, while the debt amount of public companies reached 37 billion 519 million euros at the end of last year, this figure increased throughout this year to 38 billion 736 million. However, the weight on GDP eased to 2.7% between July and September 2023; This is one tenth less than the percentage at the end of 2022.
In nominal terms, the reduction in debt in 2022 is 2 billion euros compared to 2021 and is mainly concentrated in public companies. It is controlled by the Central Government with a debt balance of 32,300. million, 2.3% of GDP.
Among the Central Government companies, Adif stands out with its debt of 16 million 657 million; Aena/Enaire (7.148 million) or Renfe operator (6.128 million).
Debt balances of public companies are depends on administrations The number of communities and city councils is smaller (2.7 billion and 2.5 billion respectively) and showed only minor changes compared to 2021.
Decrease in government debt by economy
The ratio of Spanish Public Administrations’ debt to GDP continued in 2022 with a decline that started in 2021, following the strong increase in 2020 due to the impact of the epidemic.
Specifically, the debt ratio was at 111.6% of GDP at the end of 2022; this rate was 116.8% and 120.3%. Registered in 2021 and 2020Its balance reached 1.502 billion euros respectively. The 5.2 percentage point (yp) decrease in this rate in 2022 was mainly due to economic growth.
This downward trend of Spain’s debt ratio continued throughout 2023 and reached 109.9% of GDP in the third quarter, according to preliminary data.
Decrease according to the Bank of Spain 5.2 percentage points of the rate The increase in public debt in 2022 is explained, first of all, by the contribution of nominal GDP growth, which reduces the debt ratio by 10.8 points of GDP (10.2 points in the previous year).
Secondly, the public deficit, consisting of primary balance and interest burden, increased by 2.4 points for each of these concepts and made a much lower contribution than the previous year. open primary, but higher in terms of interest burden (4.6 points and 2.1 points respectively in 2021). Third, the evolution of debt is also due to the deficit-debt adjustment, which increases the rate by eight-tenths of GDP.
Regarding debt assets, a decrease of 0.7 percentage points in the participation of non-residents in 2022, i.e. a decrease of up to 42.5% of the total, is notable; This trend is also observed in the Eurozone as a whole and in the main European countries. Except for Italy, where debt held by non-residents increased slightly.
Italy and Spain are among the major countries in the EU that reduced their debt the most
The decrease in the public debt ratio in Spain in 2022 was in line with the trend observed in other European countries. The rate in the Eurozone fell by 3.8 percentage points, up to 90.9% of GDP in 2022 (94.7% in 2021), again due to expansion in nominal GDP.
Among the largest countries (Germany, France and Italy), a decrease in this rate of 2.9 points, 1.1 points and 5.4 points, respectively, was observed in 2022. Germany achieved a debt/GDP ratio of 66.1%; France’s debt was 111.8 percent and Italy’s debt was 141.7 percent.
Source: Informacion
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